November 16, 2012 12:37 ET
Candax Reports Lifting Results, Adjustment to Lifting Methodology
TORONTO, ONTARIO--(Marketwire - Nov. 16, 2012) - Candax Energy Inc. ("Candax") (TSX:CAX) announces that Entreprise Tunisienne d'Activités Pétrolières ("ETAP"), the Tunisian state-owned oil company completed a lifting of 150,410 barrels of oil on October 30th on behalf of partners in the El Bibane, Ezzaouia and Robbana fields. The price per barrel realized for the Candax share of the lifting of $97.20 is based on the average Brent oil price for the period November 1, 2012 to November 5, 2012 with a discount of $8.77 for the Ezzaouia "mélange" category of Brent. The discount is primarily due to reduced refinery capacity due to seasonal maintenance and ETAP commercialization fees.
The net volumes attributable to Candax are approximately 50,000 barrels. Of this volume, 16,000 barrels are subject to a contractual Domestic Market Obligation discount of 10%. Proceeds of approximately $4.9 million will be realized in mid-December.
Candax also announces that it has entered into an agreement with ETAP, whereby liftings can be managed on behalf of Candax by ETAP and that each lifting will be done on a pro-rata basis, the result being that Candax will be able to realize revenues on its proportionate share of each lifting. This lifting methodology will simplify revenue recognition and allow Candax to realize revenues on a more consistent and regular basis going forward.
Pierre-Henri Boutant, CFO of Candax commented, "We are pleased to have adjusted the lifting methodology as the change will allow much better transparency and stability with respect to revenue recognition going forward."